CHAPTER 239
An Act to amend and reenact § 58.1-3916 of the Code of Virginia, relating to local taxation; extension for federal government shutdown.
[H 915]
Approved April 6, 2026
Be it enacted by the General Assembly of Virginia:
1. That § 58.1-3916 of the Code of Virginia is amended and reenacted as follows:
§ 58.1-3916 . Counties, cities, and towns may provide dates for filing returns and set penalties, interest, etc.
Notwithstanding provisions contained in §§ 58.1-3518 , 58.1-3900 , 58.1-3913 , 58.1-3915 , and 58.1-3918 , the governing body of any county, city, or town may provide by ordinance the time for filing local license applications and annual returns of taxable tangible personal property, machinery and tools, and merchants' capital. The governing body may also by ordinance establish due dates for the payment of local taxes; may provide that payment be made in a single installment or in two equal installments; may offer options, which may include coupon books and payroll deductions, which allow the taxpayer to determine whether to pay the tangible personal property tax through monthly, bimonthly, quarterly, or semiannual installments or in a lump sum, provided such taxes are paid in full by the final due date; may provide by ordinance penalties for failure to file such applications and returns and for nonpayment in time; may provide for payment of interest on delinquent taxes; and may provide for the recovery of reasonable attorney's or collection agency's fees actually contracted for, not to exceed 20 percent of the delinquent taxes and other charges so collected. A locality that provides for payment of interest on delinquent taxes shall provide for interest at the same rate on overpayments due to erroneously assessed taxes to be paid to the taxpayer, provided that no interest shall be required to be paid on such refund if (i) the amount of the refund is $10 or less or (ii) the refund is the result of proration pursuant to § 58.1-3516 . A court that finds that an overpayment of local taxes has been made in an action brought pursuant to § 58.1-3984 shall award interest at the appropriate rate, notwithstanding the failure of the locality to conform its ordinance to the requirements of this section.
Notwithstanding any contrary provision of law, the local governing body shall allow an automatic extension on real property taxes imposed upon a primary residence and personal property taxes imposed upon a qualifying vehicle, as defined in § 58.1-3523 , owed by members of the armed services of the United States deployed outside of the United States. Such extension shall end and the taxes shall be due 90 days following the completion of such member's deployment. For purposes of this section, "the armed services of the United States" includes active duty service with the regular Armed Forces of the United States or the National Guard or other reserve component.
Notwithstanding any contrary provision of law, the local governing body may by ordinance allow an extension on personal property taxes owed by (a) federal employees who are furloughed due to a federal government shutdown and (b) essential federal employees who continue to work during a federal government shutdown but do not receive immediate payment for such work as a result of such shutdown. Such extension shall be granted only upon application of a federal employee. Any such extension granted shall end and the taxes shall be due no later than 90 days following the reopening of the federal government.
No tax assessment or tax bill shall be deemed delinquent and subject to the collection procedures prescribed herein during the pendency of any administrative appeal under § 58.1-3980 , so long as the appeal is filed within 90 days of the date of the assessment, and for 30 days after the date of the final determination of the appeal, provided that nothing in this paragraph shall be construed to preclude the assessment or refund, following the final determination of such appeal, of such interest as otherwise may be provided by general law as to that portion of a tax bill that has remained unpaid or was overpaid during the pendency of such appeal and is determined in such appeal to be properly due and owing.